Egypt's Morsi signs new charter into law

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EGYPTIAN President Mohamed Morsi has signed into law a new constitution voted in despite weeks of opposition protests, but he was left facing an economic crisis and international disquiet over his rule.

The Islamist-dominated senate convened on Wednesday to swear in 90 new members appointed by Morsi. It was expected to draft a law for legislative elections for the dissolved lower house that have to be held by the end of February.

The National Salvation Front opposition coalition said it would vie for seats in the parliament, which has powers under the new charter that could hamper Morsi's ability to govern.

"We will work together to enter the election," Front spokesman Khaled Dawoud said.

He also said the coalition would legally contest the referendum, which it claims was riddled by fraud. Its supporters had demonstrated since late November against the document, with some clashes with pro-Morsi supporters turning bloody.

The national electoral commission said late on Tuesday that 64 per cent of voters in the two-round referendum backed the new constitution. Turnout was 33 per cent, it said.

Morsi immediately afterwards signed into law the charter, which had been written up by his Islamist allies.

Christians and liberals boycotted the process in protest against changes they saw as weakening human rights, especially those of women, and possibly paving the way for the introduction of a form of fundamentalist Islamic law.

The US, which gives $US1.3 billion ($A1.26 billion) a year to Egypt's influential military, called on Morsi to work to "bridge divisions" with the largely secular opposition.

"We have consistently supported the principle that democracy requires much more than simple majority rule," acting US State Department spokesman Patrick Ventrell said in a statement.

"We hope all sides will re-commit themselves to condemn and prevent violence."

The political crisis has taken a heavy toll on Egypt's economy.

The state-owned Al-Ahram newspaper reported there was "fear in the Egyptian street" after rating agency Standard and Poor's downgraded Egypt's long-term credit rating one notch to B-.

The chief economist at CI Capital, Mona Mansour, said a crucial $US4.8 billion International Monetary Fund loan that had been scheduled for this or next month might be postponed until the new parliament is established in March.